Under what conditions will Annex Brands indemnify a franchisee in trademark litigation?

According to Annex Brands's 2025 Franchise Disclosure Document, Annex Brands will indemnify a franchisee in trademark litigation under specific conditions. Annex Brands will provide indemnification to the franchisee if the litigation involves defending against infringement or unfair competition related to the use of their trademarks (referred to as "Marks").

However, this indemnification is contingent upon the franchisee's adherence to the franchise agreement, as well as compliance with Annex Brands's manuals and other business materials. This means the franchisee must be using the trademarks in the manner prescribed by Annex Brands. Furthermore, the franchisee is required to notify Annex Brands of the trademark claim within 30 days of becoming aware of it.

This clause is important for prospective franchisees as it outlines the circumstances under which Annex Brands will provide legal support and financial coverage in trademark-related disputes. Franchisees should ensure they understand and comply with all usage guidelines for the Marks to be eligible for indemnification. Failing to adhere to the franchise agreement or not providing timely notice of a claim could result in the franchisee being responsible for their own legal defense costs.